The decline and volatility of the prices of cryptocurrencies affected the psychology of many traders, who rushed to close their positions and resort to liquidation before suffering more losses.

Huge amounts of cryptocurrency were liquidated on both Huobi Global and OKEx.

However, BitMex was the hardest hit, with about $618 million worth of Bitcoin liquidated in a matter of hours.

While on the OKEx platform, erratic trading resulted in the liquidation of $88.42 million involving various cryptocurrencies.

While Huobi has seen a liquidation of $27.45 million.

Away from these three major platforms, almost all crypto assets are down around 25%.

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There is still no logical explanation for the frantic liquidation of cryptocurrencies, other than the explanation that the market is going through a bearish phase and the need to liquidate before further decline.

In light of heavy trading, BitMEX became out of service for 25 minutes between 02:16 and 02:40 UTC.

The exchange claimed in a tweet that it had problems with the devices, hence the reason for the downtime.

Says Tweet:

Between 02:16 and 02:40 UTC on March 13, 2020, we became aware of a hardware issue with our cloud service provider causing BitMEX requests to be delayed.

Sam Bankman Fried Theory:

In a series of tweets, FTX CEO Sam Bankman Fried blamed BitMEX for the current bitcoin price decline.

The meaning of his tweets was that the device shutdown theory was incorrect and seemed like a crazy explanation.

1) Today’s crazy theory: There was no problem with BitMEX devices.

– SBF (SBF_Alameda) March 13, 2020

Instead, he explained, BitMEX, in an effort to prevent Bitcoin from collapsing, had to shut down its system.

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Adding that the shutdown of the system helped bitcoin gain strength from its lows of $3,700 to $5,000.

He also noted that although the probability is low, there is little chance that BitMEX will actually encounter maintenance issues.

Reacting to the “Bunkman-Fried” theory, the platform expressed disappointment with the proposed explanation for the shutdown and its relevance to bitcoin pricing.

BitMEX also indicated that it is securely protected and has one of the largest security discoveries in the field of crypto to ensure more security for users of the platform.

The platform also wrote on Twitter:

BitMEX insurance fund is the largest in the industry by volume and will continue to be healthy.

Blame BitMEX:

Popular crypto trader Salsatekila, a prominent crypto trader, cited BitMEX as causing the recent selling pressure on Bitcoin.

Bitmex goes down (top left) and buyers come across the board🙈 pic.twitter.com/LlJdUa3WFr

Read:The US Securities and Exchange Commission (SEC) approves the first IPO on the Ethereum network

– SalsaTekila (July) (@SalsaTekila) March 13, 2020

He noted that even though the bitcoin price fell to $3,600, spot buyers were willing to buy in the midst of the decline.

Last month, there were predictions of a revolutionary rally in the crypto space.

But suddenly, things turned upside down, and no one knows when we will reach the bottom yet.

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BitMEX is accused of contributing to the decline of Bitcoin … and the platform responds

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